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News headlines for 2nd September

The Sunday Telegraph leads with a call from the Tory Right for Osborne to cut tax and spend less to boost the economy. David Davis is calling for deeper cuts and an end to the government’s support of the Euro in its present form. This comes as the Liberal Democrats are calling for a new annual property tax, which could be as much as 1.5% of a property’s value. Sunday Telegraph, p.1

Property:

The mortgage squeeze continues to hit sales activity. Estate agents are predicting an unseasonably slow autumn, with Nationwide’s 1.3% increase in prices in August attributed to a lack of properties for sale. London prices are defying this, rising 6.5% annually according to Land Registry. This has been down to international buyers, with Knight Frank reporting that 33% of all prime buyers are overseas buyers, and Cluttons suggesting a weaker pound is causing the influx from abroad. Sunday Times Money p.4-5

Personal Finance:

The Castle Trust are launching a new mortgage product, which will see borrowers swap a chunk of capital gains in exchange for an interest-only loan to help meet deposit requirements. Buyers with a 20% deposit can borrow a further 20%, in exchange for Castle Trust taking 40% of the increase in value of the property when the borrower moves. If prices fall, the debt is also reduced – by 20% of the property’s fall in sales price. While the scheme is likely to get FSA approval in the next two weeks, it remains to be seen whether it will actually be used. Santander, the 2nd biggest lender in the UK, said it would not approve loans using this scheme. Sunday Times Money, p.1

Recruitment:

TalkTalk is moving into mobile TV and telephony, in a move that is expected to create up to 500 jobs for engineers. The move will increase the company’s workforce to 2,800. Sunday Telegraph, B2